Bitcoin and Blockchain Technology: What Attorneys

Transcript:Bitcoin and Blockchain Technology: What Attorneys:
Bitcoin and Blockchain Technology: What Attorneys Need to Know Matthew S. McKeever Copple, Rockey, McKeever & Schlecht, P.C., L.L.O. Omaha Bar Association – Innovations in the Law CLE December 7, 2018 Disclaimer The content on this presentation is offered only as a public service for information purposes only does not constitute solicitation or provision of legal advice or financial advice. This presentation should not be used as a substitute for obtaining legal advice from an attorney, tax advice from an accountant or investment advise from a licensed financial advisor. You should always consult a suitably qualified professional regarding any specific legal, accounting, tax or investment matters. The comments and opinions expressed are of the individual presenter and may not reflect the opinions of the firm or any individual attorney. Courtesy Forbes Magazine High: $19,783.00 What is Bitcoin? “Digital ledger book.” – Former CEO of Paypal Software that records and secures transactions. There are no physical coins. Bitcoin: units on a public, digital ledger. Bitcoins stored in files called “wallets”. Entries are submitted by “keys”. Transactions secured as pieces of a math puzzle. Bitcoin program runs on 400,000 computers. Internet’s version of cash. “Digital cash.” Value comes from utility, acceptance & speculation. Bitcoin is Decentralized No central authority runs Bitcoin, no “Fed”. Bitcoin program run by thousands of computers linked over the internet – “miners”. Peer-to-peer transactions - no “middle-man”. “Trustless” Not a “fiat currency” No central exchange or a “CEO of Bitcoin”. Bitcoin as Cryptography Transactions held together by math puzzle. Bitcoin is a puzzle that is solved one piece at a time, called a “block”. Each puzzle piece holds records of a series of transactions on the ledger. The series of blocks is called the “blockchain”. Cryptography and shared nature prevents duplication and fraud. Wallets and Transactions Wallets – Place to keep track of your bitcoins. 1. Private key 2. Public key Transactions from one wallet to another. Wallets secure: 64 bit encryption. Record of transactions secured by: 1. Shared ledger. 2. Cryptography. What is Blockchain? It is the software technology behind Bitcoin. Bitcoin is the first blockchain. Combination of Technologies A. Digital Ledger Books B. Networked Computers C. Cryptography Transactions on a Blockchain Transactions on a Blockchain Transactions on a Blockchain Block of Transactions Transactions on a Blockchain Chain of Transaction Blocks Blocks are bound together and secured by cryptography: digital signatures and hashes. Thousands of Blockchains Litecoin